FTSE MIB index is the main benchmark index for the Italian stock market and it covers nearly 80 per cent of the Italian stock market capitalisation. It was originally founded in 1992 as COMIT 30 until it was taken by the Borsa Italiana. Then it was renamed to MIB 30 and its base value was set at 10,000. After cooperation between S&P and the Italian Stock exchange took place, they launched the S&P/MIB consisting of 40 stocks and it later replaced the MIB 30.
The FTSE MIB includes 40 largest and the most liquid stocks traded on the Italian National Stock Exchange. Consequently, FTSE MIB 40 provides an overview of equity market health along with the health of the Italian economy.
FTSE MIB is a market capitalisation weighted and stocks with larger market capitalisation will have a stronger influence on its price. The Italy 40 is structured in a way that the sectors included will provide a close representation of the weight of industries in the overall Italian equity market.
IT40 has exhibited a higher level of volatility during the last decade. The price chart shows that there is an upward trend during the previous decade but what is more interesting is the fact that there are numerous and sizable pullbacks from the primary trend. The retracements can be as significant as a couple of tens of percentages and traders have the chance to make profits not only by taking long positions but also by going short with the Italy 40 index.
The lowest price in ten years is identified in May/June 2012 when the index had a value of around 12,800. In contrast, it achieved a peak of almost 25,000 in the first half of February 2020. However, shortly after reaching its decade high price, the FTSE MIB index value significantly decreased and hit a 15,000 in a period of one month. The significant decrease in value was caused by the worsening economic health, which was the consequence of the pandemic. However, the Italy 40 index has managed to recover part of its value.
Although there are different instruments traditionally used by traders, they haave certain weaknesses. For instance, derivative instruments could limit the liquidity, be complex and might incur higher costs. Also, FTSE MIB trading through certain types of investment funds could mean that you need to pay different types of fees which increases the cost of trading.
The tokenised assets available on Currency.com leverage trading platform cover all of the aspects needed to trade FTSE MIB. Because the tokenised assets are created based on blockchain technology along with the application of advanced order management system, you can conduct the FTSE MIB trading swiftly and at low cost. The platform enables you to profit from positions related to real assets while you don't possess them itself. So, opening positions with tokenised FTSE MIB would mean that you make profits from changes in FTSE MIB price.
Currency.com also offers the possibility for traders to increase their profitability, giving them the leverage of up to 1:100 or the margin for tokenised assets is 1 per cent. Accordingly, you will need less capital for FTSE MIB trading with tokenised assets compared to some of the alternative instruments. For instance, opening a position of $25,000 (£19,934) with tokenised FTSE MIB index on Currency.com platform requires that you have available capital of only 1 per cent or you need to have $250 (£199.34).
Another benefit of speculating with the price movements using tokens on Currency.com is that you can do it with crypto or with fiat money. Hence, if you own Bitcoin or Ether, there is no need for you to exchange them for dollars, pounds or euros to be able to trade the FTSE MIB. While trading with crypto is not possible with other instruments or on other platforms, you can fund your trading account on Curruency.com with cryptocurrencies which makes the funding process much easier since no exchange takes place.
Trading tokenised FTSE MIB index could be done via the following steps:
FTSE MIB index trading at Currency.com tokenised securities exchange has a number of advantages. Tokenised securities are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
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